WATER BANKRUPTSY

DAVOS, Switzerland
(AFP) The world is heading toward "water
bankruptcy" as demand for the precious commodity
outstrips even high population growth, a new
report warns.

In less than 20
years water scarcity could lose the equivalent of
the entire grain crops of India and the United
States, said the World Economic Forum report,
which added that food demand is expected to
sky-rocket in coming
decades.

"The world
simply cannot manage water in the future in the
same way as in the past or the economic web will
collapse," said the
report.

Water has been
consistently under-priced in many regions and has
been wasted and overused, the report
said.

Many places in
the world are on the verge of "water bankruptcy"
following a series of regional water "bubbles"
over the past 50 years.

The report said that
energy production accounts for about 39 percent of
all water used in the United States and 31 percent
of water withdrawals in the EU. Only three percent
is actually consumed, but competition for access
to water will intensify over the next two
decades.

Water requirements
for energy are expected to grow by as much as 165
percent in the United States and 130 percent in
the EU, putting a major "squeeze" on water for
agriculture, said the
WEF.

The report said most
glaciers in the Himalayas and Tibet will be gone
by 2100 at the current rate of melting, but they
provide water for two billion people. About 70
major rivers around the world are close to being
totally drained in order to supply water for
irrigation and
reservoirs.

The WEF said that
within two decades water will become a mainstream
theme for investors -- even better than
oil.

Speaking at the Davos
forum, UN Secretary General Ban Ki-moon said: "The
water problem is broad and systemic. Our work to
deal with it must be so as
well."

Corporate chiefs at
the forum have also expressed concern. "I am
convinced that, under present conditions and
considering the way water is being currently
managed, we will run out of water long before we
run out of fuel," said Peter Brabeck-Letmathe,
chairman of Swiss food conglomerate
Nestle.

"The only way to
measurably and sustainably improve this dire
situation is through broad-scale collaborative
efforts between governments, industry, academic,
and other stakeholders around the world," said
Indra Nooyi, chairman and chief executive of
PepsiCo Inc, the US drinks major that makes huge
use of water.

Dominic Waughray, the
WEF head of environmental initiatives, said
"management of future water needs stands out as an
urgent, tangible and fully resolvable issue for
multiple stakeholders to engage
in."